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B207 Block 2: Competing in a global context (Operations (Supply chain…

- - - - Five Forces Model
        
        Suppliers
        
        Potential entrants
        
        Buyers
        
        Substitutes
        
        Industry competitors
    - - Diamond Model
        
        Michael Porter
        
        Structure of firms and rivalry
        
        Factor conditions
        
        Related and supporting industries
        
        Demand conditions
      - Comparative advantage
        
        Absolute
        
        If its cheaper to buy than produce then import
        
        Relative
        
        Specialised production causing the price difference in the production of two different goods
      - Competitive advantage
  - - - Skills
      - Profit potential
      - Size and growth rate
      - Competitive advantage
      - Market access
      - Competition
      - Recources
    - - Economic
      - legal
      - Technological
      - Socio-cultural
      - Trading systems
      - Ethical
    - - Brand naming
      - Brand equity
      - Brand identity
      - Brand reputation
  - - - Convergence
      - Divergence
        
        Crossvergence
        
        Adapting to innovation
        
        Global and local
    - - Marketing ethics
        
        Differing standards of consumer protection
        
        Target market
        
        Geographical segregation
      - CSR
- - - - Home county operations with exports
      - Multi-domestic operations
      - Regional operations
      - Global coordinated operations
  - - - Upstream
      - Downstream
    - - Avdantages
        
        Focus on internal capabilities
        
        Access to supplier capabilities
        
        Reduced need for capital investment
        
        Fewer staff
        
        Lower unit costs
        
        Clear, identifiable supply chain costs
        
        Can expand overall capacity
      - Disadvantages
        
        Loss of control
        
        Costs involved in managing suppliers
        
        Reduced economies of scale
        
        Potential closure of existing facilities
        
        Share sensitive information
        
        Dependant on supplier
        
        Increased supply chain risks
    - - Regulations
      - Costs
      - Exchange rate
- - - - The arm's-length principle
      - Transfer misspricing
      - Unitary taxation with profit apportionment
  - - - Instability when trading between countries
      - Currency 'appreciates'
      - Currency 'depreciates'
  - - - State of equilibrium
      - Economic change
      - Search for consensus to remedy the problem
      - New regulation
      - State of equilibrium
      - Unintended consequences
    - - Process for develpoing IFRS standards
        
        Agenda consultation
        
        Research programme
        
        Standards development
        
        Implementation